My company in Jaipur has not filed its annual return for the last two years; what penalties apply and how can I regularise the filing?

Detailed Legal Analysis

If your company in Jaipur has not filed its annual return for the last two years, it may face penalties under the Companies Act, 2013, and you can regularise the filing by following certain steps.

According to Section 92 of the Companies Act, 2013, every company is required to file its annual return with the Registrar of Companies (RoC). Failure to comply with this requirement can lead to substantial penalties.

• Penalties for Non-Compliance:
  • Under Section 92(5), a company that fails to file its annual return shall be liable to a fine of INR 50,000 and in case of continuing default, an additional fine of INR 1,000 for each day during which the default continues.
  • In addition to the company, every officer of the company who is in default will also be liable to a fine of INR 1,00,000 and if the default continues, a further fine of INR 5,000 for each day during which the default continues (as per Section 92(6)).
• Steps to Regularise the Filing:
  • Gather the necessary documents, including financial statements, director reports, and any other required information for the annual return.
  • Prepare the annual return in the prescribed Form MGT-7, ensuring all details are accurate and complete. Refer to Rule 11 of the Companies (Management and Administration) Rules, 2014 for guidance.
  • File the annual return with the RoC through the Ministry of Corporate Affairs (MCA) portal. You may need to pay the applicable filing fees and additional late fees due to the delayed filing.
  • Consider filing for a condonation of delay if the company has a reasonable cause for the failure to file. This application should be submitted to the National Company Law Tribunal (NCLT) under Section 460 of the Companies Act, 2013.
  • Ensure compliance with any additional requirements or clarifications sought by the RoC after filing.

It's advisable to consult with a corporate lawyer or a company secretary to navigate the process effectively and minimize penalties. Regularising your filings promptly is essential to maintain the good standing of your company and avoid further legal complications.